Pitfalls of hiring an unlicensed contractor

Have you ever received a bid from an unlicensed contractor and it’s much lower than those from licensed contractors? It can sound appealing to save money for similar workmanship, however many consumers fall into that trap. Hiring the cheapest contractor can often cost you more money in the long run.

Often, unlicensed contractors offer lower bids because they don’t pay a licensing fee, obtain a bond to protect their work and don’t have liability or workers compensation insurance.

Here is why it’s important to find a licensed contractor:

• Basic protection – A license in a specific fields shows that the person has a minimal level of competence in that field.
• Protecting property values – Many home projects require permits and unpermitted work, if it’s not to code, that could impact the property value at the time of a sale.
• Injury protection – A homeowner becomes the employer in the event of hiring an unlicensed worker and if that worker sustained injuries on the job, the homeowner could become liable.
• Protection from damage to third parties- Unlicensed workers that are negligent of a neighboring property, a passerby or other property that is damaged may result in the homeowner being responsible for their actions while employed.

In Arizona you need a license to bid on any job over $750. The state issues separate licenses for commercial and residential work for each particular trade or construction field. Licenses are good for two years.

For more information on finding a licensed contractor, visit http://www.azroc.gov. We’re also happy to provide you with a complimentary consultation. Call us at 480-483-8088.